The Yarn Factory – Case Study – Kyle Benedict Nacino
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The Yarn Factory
Kyle Benedict Nacino        11108614        PROFEAS         ER1                        Sept 8, 2015The Yarn Factory Mr. Alah Eh is engaged in Spun Yarn manufacturing. He buys polyester filaments for manufacturing into spun yarn. Raw material requirements are imported and require at least six months of inventory. When products are sold to Textile makers, a collection period of 120 days is usually experienced. Present selling prices of Spun Yarn are at Php11.50 per kg. Mr. Eh’s factory can manufacture 12,000 kgs. of spun yarn per year of 300 days. Total manufacturing costs are at Php7.50 per kg. Raw material cost is 20% of total manufacturing cost.

In addition to maintaining working capital for his receivables and inventory, Mr. Eh has provided for 1 month of finished goods inventory and 20 days of work in process. Minimum operating cash is Php5,000.Compute for Mr. Eh’s working capital level.If Mr. Eh secures a trade credit of 30 days of raw materials, how much are his working capital needs?Selling Price: P11.50Costs:        Manufacturing = P7.50 per kilo        Raw Material = P1.50 per kiloAdditional data: 40kgs per day (12000/300)                Collection period is 120 days                Minimum operating cash = P5000Working Capital = {Estimated Cost of Goods Sold * (Operating Cycle/ 300)} +Minimum Balance

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(2015, 09). The Yarn Factory. EssaysForStudent.com. Retrieved 09, 2015, from
“The Yarn Factory” EssaysForStudent.com. 09 2015. 2015. 09 2015 < "The Yarn Factory." EssaysForStudent.com. EssaysForStudent.com, 09 2015. Web. 09 2015. < "The Yarn Factory." EssaysForStudent.com. 09, 2015. Accessed 09, 2015. Essay Preview By: Kyle Benedict Nacino Submitted: September 9, 2015 Essay Length: 385 Words / 2 Pages Paper type: Case Study Views: 367 Report this essay Tweet Related Essays Charlie and the Chocolate Factory Speech The book Charlie and the chocolate factory was written in 1964. The story is about a man named Willy Wonka who owns a world famous 1,553 Words  |  7 Pages Factory Farming Animal rights are practically non-existent in many different ways today. Factory farming is probably the worst thing they can do to the poor helpless animals. 594 Words  |  3 Pages Comparison of Charlie and the Chocolate Factory Book Vs. Movie Rosina Gonzalez ENG 353 02/08/05 Research Paper For this paper, I chose the Roald Dahl modern fantasy book, Charlie and the Chocolate Factory, and the 781 Words  |  4 Pages Women's Undergarment Factory # 8 “Women’s undergarment factory # 8” Objectives Corporate objectives a) Increase income and profitability Marketing objectives a) Gain competitive advantage over competitors Problem Statement a) WUF#8 653 Words  |  3 Pages Similar Topics Secret Life Factory Service Centers Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter

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Yarn Factory And Working Capital. (July 11, 2021). Retrieved from https://www.freeessays.education/yarn-factory-and-working-capital-essay/